The world’s biggest auto maker hopes a newly redesigned entry-level compact it is rolling out at the Shanghai international auto show will help the company get its zip back in the world’s biggest auto market–but one it has struggled to understand.

Toyota introduced two versions of the compact–the Yaris hatchback and the Vios sedan–at China’s premier auto show Sunday. Toyota hopes the new models will right some strategic missteps that have hurt sales in China, a situation that was exacerbated by a territorial dispute over islands in the East China Sea claimed by both China and Japan, and which led to a boycott of Japanese-brand products last autumn.

Along with Japanese rivals Nissan Motor Co. and Honda Motor Co., Toyota has unveiled a slew of vehicles at the show specifically for the Chinese market. But getting both design and price right is key to appealing to younger Chinese, a promising demographic expected to drive growth in auto sales as they start earning enough to become first-time buyers.

Toyota aims to sell 900,000 vehicles in China this year, a conservative target compared with the previous estimate that sales would reach 1 million in 2012. Toyota missed that mark by 160,000, as fallout from the territorial dispute took a toll.

Toyota hopes the two new compacts and other models such as the RAV4 light sport utility vehicle will reverse that when they appear in showrooms later this year.

But the auto maker may not be able to get past a crucial hurdle that could derail its comeback–price.

The head of Toyota’s China operations, Hiroji Onishi, told reporters on the sidelines of the Shanghai auto show Sunday that the company has been taking steps to lower the prices of its vehicles, including increased use of locally sourced parts. He said the company is on track to meet its target of lower parts costs. But it may not be enough.

“These models are almost entirely new, so even if we’re able to cut costs on a part-by-part basis, quite frankly, when the whole product comes together, 60,000 yuan ($9,700) is going to be difficult for us to achieve.”

The current starting price of the Yaris is 87,000 yuan ($14,000), and that of the Vios is 89,500 yuan ($14,500).